The price differentials in fresh pork between the wholesale and retail levels have widened substantially to $25.3 per catty.
This was revealed by the Consumer Council in an analysis of the price movement of fresh pork over a period of 23 months between January 2007 and November 2008.
The study showed that fresh pork prices began to escalate in mid-2007 rising to a peak of $15 per catty in average wholesale price in March 2008, and $40.2 in average retail price in June 2008.
Thereafter, the average wholesale price began its descent from the peak and by November 2008, it stood at $10.8 per catty, down by 28%.
Concomitant with the price movement in wholesale, the average retail price was also adjusted downward from its peak, but to a significantly smaller extent. In November 2008, the retail price was $36.1 per catty falling by only 10.2%.
Compared with the corresponding period in 2007, the average wholesale price in live pigs actually dropped from $11.6 to $10.8 per catty or down 6.9%.
Whereas in the case of retail price, it showed the reverse over the same period: the average retail price in fresh pork surged from $31.2 to $36.1 per catty or up 15.7%.
The discrepancy indicated that the retail price has not been adjusted downward at a pace in keeping with the wholesale price movement.
Clearly there is room for price reduction in the retail of fresh pork. Fresh pork traders are urged to pass on the benefit of declining wholesale price to the consumers.
Similarly, the same price study found fresh beef prices began rising in mid-2007 and up to November 2008, still continued with no signs of downward adjustment.
The average wholesale price of live cattle stood at $23.4 per catty in November 2008, representing an increase of 29.3% over the corresponding period in 2007.
Whereas, the average retail price of fresh beef rose to $58.9 per catty by an increase of 21.2%.
While the movements of wholesale and retail prices seem to be in line with each other, the differentials have nevertheless widened during the period under analysis - rising from $22.5 in January 2007 to $35.5 in November 2008 per catty.
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